A Village incorporates itself as a City. Whether the Village’s Social Security coverage
carries over to the City appears to turn on the legal status of the new entity vis-à-vis
the former. The answer depends on the laws of the State.
If, according to State law, the result of the change is merely a change in the form (SL 60001.680A) but not a change in the substance (SL 60001.680A) of the entity or vice versa – just a change in substance but not a change in form,
the same positions that were previously covered under the entity’s Section 218 coverage
modification would continue to exist; and the procedures (including referendum) to
effect new coverage would not be necessary. Only a name change notification would
be required for Social Security Administration record purposes.
However, if according to State law, the result of the change is a change in both the
form and the substance of the entity, then the positions involved would be for a new
employer; and procedures for implementing new coverage (including a referendum for
the retirement system coverage group) would have to be undertaken.